Omega Oil & Gas Launches Major Taroom Trough Drilling Program Backed by $102 Million Cash Reserve

Omega’s $60 Million Capital Raise Fuels Expanded Eastern Taroom Trough Drilling Initiative

During the June quarter, Omega Oil & Gas successfully raised $60 million in equity, significantly strengthening its balance sheet and enabling the execution of its largest drilling and testing campaign to date. This capital raise increased the company’s cash holdings to $102 million as of 30 June 2026, up from $50 million on 31 March 2026. Combined with a debt-free status, Omega is fully funded to undertake an expanded drilling program consisting of four vertical wells and one to two horizontal wells, along with stimulation and flow testing across its eastern Taroom Trough acreage.

The company retains operational flexibility with multiple rig contract options available, allowing deployment based on drilling outcomes. Omega’s robust cash position and zero debt highlight its commitment to advancing core assets while maintaining financial discipline. CEO and Managing Director Trevor Brown emphasized that the company is commencing its 2026/27 drilling program backed by over $100 million in cash, supporting this capital-intensive campaign.

Canyon-3 and Canyon-4 Vertical Wells Begin Drilling on Prepared Sites

The 2026/27 drilling program started this quarter, with Helmerich & Payne FlexRig 648 rigging up at the Canyon-3 well location. Drilling at Canyon-3 is slated to begin near the end of July 2026. Lease pad construction has been completed for both Canyon-3 and Canyon-4 wells in PCA 342, with both sites ready for drilling. These wells represent the first two vertical wells in Omega’s planned four-well vertical sequence aimed at testing the continuity of five major reservoir intervals across its extensive acreage.

This drilling campaign builds on previous successes with the Canyon-1/1H and Canyon-2 wells completed between 2023 and 2025. Omega aims to confirm the continuity of multiple overpressured, oil and gas-bearing Permian sand reservoirs while characterizing reservoir properties and fluid distribution. Each vertical well is designed to accommodate later horizontal drilling, with final horizontal well locations to be determined after analyzing vertical well data. Canyon-3 results are expected by late August 2026, with subsequent vertical well results anticipated monthly, providing a steady stream of data over the next year.

Industry-Leading Land Access Secured for ATP 2081 Within Three Months

Omega achieved land access for the first ATP 2081 well location just over three months after tenure grant, a milestone described as industry-leading. This accomplishment reflects Omega’s operational agility and strong relationships with landholders and local communities. Lease pad construction for the initial ATP 2081 well is underway. Pending joint venture approval, this well will be the third in the 2026/27 drilling program, extending exploration to test the northern extension of the Permian play beyond the Canyon area.

The third and fourth vertical wells are expected to be drilled in ATP 2081 after completing the Canyon wells, allowing Omega to integrate learnings from Canyon-3 and Canyon-4 into well design and execution. This rapid land access underscores Omega’s capability to navigate permitting and stakeholder engagement crucial for advancing exploration and appraisal in Queensland. The company’s track record in securing land access swiftly supports confidence in maintaining drilling momentum throughout the 2026/27 program.

Targeting Five Major Permian Reservoir Intervals Across Taroom Trough Acreage

Omega’s drilling program is focused on testing five significant Permian reservoir intervals across its eastern Taroom Trough acreage. These overpressured, oil and gas-bearing sands are the primary targets for the 2026/27 campaign. By drilling multiple vertical wells at strategic locations, Omega aims to define reservoir continuity, thickness, and fluid content, collecting essential subsurface data to refine reservoir characterization and fluid distribution understanding.

The vertical wells will feature US-style well architecture with 5\u00bd-inch casing, and planned 2,000-metre lateral horizontal sidetracks will follow the vertical phase. This approach aligns with industry best practices for unconventional resource appraisal in comparable geological settings. After completing the four vertical wells, one or two horizontal sidetracks will be drilled into the most promising intervals, followed by fracture stimulation and flow testing in early 2027 to obtain production rates and fluid composition data critical for resource evaluation and reserve booking.

Eastern Taroom Trough’s Geological Features Mirror Leading US Unconventional Basins

Omega’s technical focus on the eastern Taroom Trough is driven by geological characteristics analogous to top unconventional basins in the United States. Key attributes include depositional environment, reservoir targets, structural configuration, and oil presence. These factors support Omega’s belief that its acreage contains internationally significant oil and gas volumes, justifying the scale of the 2026/27 drilling campaign.

Since February 2026, other operators have drilled four horizontal wells on the Taroom Trough’s western flank using the same Helmerich & Payne FlexRig 648 now contracted to Omega. This activity has generated momentum in the Taroom Trough development sector, validating basin prospectivity and demonstrating industry commitment to unconventional exploration in the region. Additionally, the Queensland Government launched the Taroom Trough Development Plan, with its first meeting on 1 June 2026. Led by the Office of the Coordinator-General, this initiative aims to streamline approvals, coordinate infrastructure planning, and accelerate basin development, creating a supportive regulatory environment for Omega’s operations.

Resource and Reserves Updates Scheduled for Late 2026

Omega plans to release updated resource and reserves assessments in late 2026 after completing drilling and initial data analysis from its 2026/27 program. These updates will incorporate vertical well results and provide investors with an enhanced understanding of the company’s resource base in the Canyon PCA Area. The company also intends to establish a maiden contingent resource booking in ATP 2081, highlighting the Taroom Trough’s resource potential in the northern extension of its acreage.

These assessments will be pivotal in guiding Omega’s commercial development strategy by identifying the most promising areas across its acreage. The drilling program is designed to generate the necessary data to support these updates, offering independent validation of Omega’s subsurface work and forming the basis for development planning and investment decisions. The timing aligns with Canyon-3 and Canyon-4 drilling completion, allowing integration of early results into the resource framework.

Elixir Petroleum’s 12-Stage Fracture Stimulation and Bennett Oil Field Status

Omega holds a 19.07% stake in Elixir Petroleum (ASX:EXR), an operator active in the Taroom Trough. During the quarter, Elixir completed a 12-stage fracture stimulation at the Lorelle-3H well and began well testing, demonstrating broader industry engagement and the region’s hydrocarbon potential.

Operations at the Bennett oil field in PL 17 remain suspended. Omega has initiated a farm-down process for Bennett and is in discussions with multiple parties regarding potential asset disposition. Updates on this process will be provided as available. The suspension reflects Omega’s strategic focus on the higher-potential eastern Taroom Trough acreage, where capital, expertise, and operational efforts are concentrated during the current drilling campaign.

Clear 12-Month Drilling Timeline Offers Investors Regular Progress Updates

Omega has outlined a detailed timeline for its 2026/27 drilling program, providing investors with clear milestones and expected result release dates. Rig mobilization began this quarter, with Canyon-3 drilling expected to start near the end of July 2026. Results from Canyon-3 are anticipated by late August 2026, with subsequent vertical well results released approximately monthly. This phased schedule ensures a consistent flow of material information over the next year, enabling ongoing market evaluation of drilling and testing outcomes.

Following vertical drilling, one or two 2,000-metre horizontal sidetracks will be drilled into the most prospective reservoirs for fracture stimulation and flow testing in early 2027. This disciplined, data-driven approach allows Omega to incorporate learnings from each well into subsequent well designs, maximizing the value of information from this capital-intensive program. Regular major announcements provide investors with opportunities to assess progress and the company’s advancement toward commercial development.

Strategic Eastern Taroom Trough Focus Aligns with Australia’s Energy Security Goals

Omega’s exploration and development activities in the eastern Taroom Trough support Australia’s broader energy and liquid fuel security objectives. The company aims to define and develop internationally significant oil and gas volumes, contributing to national hydrocarbon reserves and production capacity. CEO Trevor Brown highlighted that the program is designed to deliver substantial value while enhancing Australia’s energy security, positioning Omega as a domestic energy producer aligned with national policies.

The Queensland Government’s support for unconventional hydrocarbon development through initiatives like the Taroom Trough Development Plan, led by the Office of the Coordinator-General, fosters a favorable environment for Omega’s operations. This plan seeks to streamline approvals, coordinate infrastructure, and accelerate basin development. Such government engagement aligns with Omega’s operational goals and commitment to responsible, safe, and data-driven resource development that meets regulatory and community expectations.